Use the Following to Answer Questions

question 273

Multiple Choice

Use the following to answer questions :
Figure: The Market for Hamburgers
-When the government imposes an excise tax,the deadweight loss will:

• A) equal the tax revenue paid to the government.
• B) be greater than the tax revenue paid to the government.
• C) be less than the tax revenue paid to the government.
• D) cause a prevention of transactions due to the cost of the tax.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholder a proportion of the company's profits.

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.

Corporations

are legal entities that are separate from their owners, providing limited liability protection, and have the ability to own assets, incur liabilities, and sell stock.